We use cookies to deliver our online services. Details of the cookies we use and instructions on how to disable them are set out in ourCookies Policy. By using this website you agree to our use of cookies.

The item you have requested is not currently available in English and you have been redirected to the next available page. You may use your browser's back button to return to the item you were viewing.

On 16 November 2016 the Sejm (lower chamber of the Parliament) adopted a bill to amend the VAT Act and certain other statutory laws, calling for numerous changes in the VAT Act and the Criminal Fiscal Code, among other laws.

With 125+ locations in 50+ countries, Dentons is home to top-tier talent that is found at the intersection of geography, industry knowledge and substantive legal experience. Working with Dentons, you will have the opportunity to learn from the best lawyers in the industry at the largest law firm in the world.

Dentons is proud to congratulate our six lawyers who are listed as “Canada’s Leading Litigation Lawyers” by Lexpert, in its 2016 special edition that profiles Lexpert-ranked lawyers in several areas of business-related litigation.

Dentons Rodyk & Davidson LLP, part of the world’s largest law firm, Dentons, is pleased to announce that John Dick has joined the Firm as part of its Energy, Resources and Infrastructure practice and its South East Asia regional practice.

In an unpublished decision on August 19, the California Court of Appeal, Fourth District, reinstated a class action asserting construction defect claims against a nationwide homebuilder. The case is located at 2015 WL 4940630, at *1 (Cal. Ct. App. Aug. 19, 2015). In reviving the class action, the court of appeal reversed a lower court decision which had stricken the class allegations from the plaintiff’s complaint.

The court’s decision to reinstate the class means that the class action lawsuit will now proceed to discovery and an evidentiary hearing on whether the class may be certified. This is a significant decision, as it effectively opens the door to class claims against homebuilders (and potentially other service providers employed in the homebuilding industry) arising out of alleged construction defects on California residential development and construction projects.

Class actions are commonly filed in California state and federal courts, as California courts are often viewed by the plaintiff’s bar as favorable to class treatment. Allowing class treatment of claims can be a game-changer, as the potential liability may increase exponentially, making even relatively trivial damages claims serious as they are distributed among large classes of plaintiffs.

Construction defect claims, while often pooled together for case management purposes, were previously thought unsuitable for class treatment in California because of the individual factual questions that must be determined on a house-by-house basis. The defendant homebuilder made this argument, but the court rejected it:

Despite defendant’s attempts to confuse the issue, there is nothing here based on the allegations of the complaint that suggests that each house is so unique that common facts, such as liability and defenses, cannot be considered as a class.

2015 WL 4940630, at *3. While the decision is, for now, unpublished, it could signal a troubling trend for companies involved in the homebuilding industry in California. It is not yet clear whether the decision will be appealed to the California Supreme Court.

Dentons’ California attorneys have significant expertise defending class actions, and particular expertise in California real estate litigation. We will continue to monitor the case, as well as new class action filings in this area, to determine whether construction defect claims are being filed as class actions.

Disclaimer

Unsolicited emails and other information sent to Dentons will not be considered confidential, may be disclosed to others, may not receive a response, and do not create a lawyer-client relationship. If you are not already a client of Dentons, please do not send us any confidential information.